Bitcoin is a Wildcard Destined to Outperform — Bloomberg Analyst
Commodities strategist believed that Bitcoin will rebound strongly from the bear market despite headwinds for high-risk assets.
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Bloomberg analyst Mike McGlone called Bitcoin (BTC) a “wildcard” that is “ripe” to outperform once traditional stocks bottom out.
In a post on Linkedin and Twitter on Wednesday, McGlone explained that while US Federal Reserve tightening is likely to determine the direction of the stock market, Bitcoin remains a "wildcard" that could reverse the trend, stating:
“Bitcoin is a wildcard that is more ripe to outperform when stocks are at their lowest, but is moving to look more like gold and bonds.”
The commodity strategist shared more details in a report on Wednesday, which noted that Bitcoin was poised to rebound strongly from the bear market despite a "strong headwind" to higher-risk assets:
"It's usually a matter of time for the fed funds gauge to swing into cuts, and when it does, Bitcoin is poised to be the biggest beneficiary."
The report notes that while Bitcoin would follow a similar trend to Treasuries and gold, Ether (ETH) “may have a higher correlation with stocks.”
The Federal Reserve's increased quantitative tightening comes amid several major interest rate hikes throughout 2022, with the latest peak representing a 75 basis point increase on July 27.
Five Chart Macro: Crude, Commodities, Stocks, Bonds, Bitcoin - #Crudeoil Could Recapture a Sustained Bear Market and Fuel T-Bond Bull. #FederalReserve Tightening as global GDP turns negative...
Commodities strategist believed that Bitcoin will rebound strongly from the bear market despite headwinds for high-risk assets.
New
Bloomberg analyst Mike McGlone called Bitcoin (BTC) a “wildcard” that is “ripe” to outperform once traditional stocks bottom out.
In a post on Linkedin and Twitter on Wednesday, McGlone explained that while US Federal Reserve tightening is likely to determine the direction of the stock market, Bitcoin remains a "wildcard" that could reverse the trend, stating:
“Bitcoin is a wildcard that is more ripe to outperform when stocks are at their lowest, but is moving to look more like gold and bonds.”
The commodity strategist shared more details in a report on Wednesday, which noted that Bitcoin was poised to rebound strongly from the bear market despite a "strong headwind" to higher-risk assets:
"It's usually a matter of time for the fed funds gauge to swing into cuts, and when it does, Bitcoin is poised to be the biggest beneficiary."
The report notes that while Bitcoin would follow a similar trend to Treasuries and gold, Ether (ETH) “may have a higher correlation with stocks.”
The Federal Reserve's increased quantitative tightening comes amid several major interest rate hikes throughout 2022, with the latest peak representing a 75 basis point increase on July 27.
Five Chart Macro: Crude, Commodities, Stocks, Bonds, Bitcoin - #Crudeoil Could Recapture a Sustained Bear Market and Fuel T-Bond Bull. #FederalReserve Tightening as global GDP turns negative...
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